Asset Value Investors AVI Japanese Special Situations Fund

The investment objective of the Fund is to generate long-term returns. There can be no assurance that the Fund will achieve its investment objective. The Sub-Investment Manager shall seek to achieve the investment objective by investing in a portfolio of, what in the opinion of the Sub-Investment Manager, are over-capitalised Japanese equities, whilst engaging with the company to release value to shareholders, e.g. the Sub-Investment Manager may seek to persuade the company to increase dividend payments, or to initiate share buybacks, or to make improvements in its operations. Overcapitalisation refers to a situation where the value of a company’s capital is worth more than its total assets. This process leads the Sub-Investment Manager to a portfolio of companies with individual allocations determined by aspects of the selection criteria. Companies shall be considered for inclusion in the portfolio if the Sub-Investment Manager believes that they are undervalued and where cash, listed securities and/or realisable assets make up a significant proportion of their market capitalisation. The Fund will seek to achieve its objective by investing predominantly in equity and equity related securities. The Fund may also invest up to 10% of its assets in Collective Investment Schemes (CIS). Where considered appropriate, the Fund may utilise financial derivative techniques and instruments for efficient portfolio management and/or to protect against foreign exchange risks. The Fund is actively managed with reference to the net dividend total return of the MSCI Japan Small Cap Net Total Return Index for performance comparison purposes as well as for the purposes of calculating the performance fee. The portfolio is unconstrained by the benchmark and holdings may deviate significantly from those in the benchmark index. The Sub-Fund does not intend to pay a dividend. Shares can be bought and redeemed on any dealing day where banks in London, Dublin and Tokyo are generally open for business. Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within 5 years.